Who must be licensed under the Alabama Consumer Credit Act Mini Code?
Creditors who regularly extend or arrange for the extension of credit or take assignments of consumer loans and who have a place of business or resident employee in Alabama must obtain an Alabama Consumer Credit Act license. Creditors with offices in Alabama must obtain a license for each location in Alabama. Creditors having no place of business in Alabama but having a resident employee in Alabama shall obtain a license for the location where the creditor maintains its records regarding Alabama loans or consumer credit contracts. Out-of-state consumer lenders with no resident employee in Alabama, banks and life insurance companies are exempt from licensing; however, they must still follow all other requirements of the Alabama Consumer Credit Act regarding their consumer loans in Alabama. The Alabama Consumer Credit Act caps interest rates for consumer loans in amounts of less than $2,000. The rate cap is a stacked rate allowing a maximum of 15% per year for the first $750 of the amoun
